Hottest Market in Years…The Trend Continues…
Single Family Prices And Volume
188 single family homes were sold in April compared to 162 in March which represented a volume increase of 16% over March and a 27% increase compared to the same time last year. Upward pressure on pricing continues as April’s average sale price for a single family home of $437,232 represented an increase of 2.21% over March 2016 and a nearly 13% increase over April of 2015. To put this in perspective, a 2.21% increase on a $500,000 property is an increase of $11,050 and 13% is $65,000. However, caution should be taken in relying exclusively on monthly average year-over-year increases, as the median sale price was up less than 6% year-over-year which suggests that executive & luxury homes at the higher end of the market appear to be skewing the average sale price upwards.
Strength of the Trend
Factors we also look at when analyzing a market to validate the strength of the trend include the sell/list ratio; sell price/list price; days to sell, and current inventory numbers: The sell/list ratio saw a 12.22% reduction over March 2016 from 90% at that time to 79% for April though this did still represent a 19.70% increase over April 2015, and this is still substantially above the average. When the increased listing and sales volume is factored in, there is no surprise that we saw a decline month-over-month. The sell price/list price did increase by 1% to 99%, and the number of days on the market continued to drop from 39 in March to 26 in April which represents a reduction of 33.33% and a 18.75% reduction when compared to April 2015, suggesting that increasingly buyers are needing to act quickly and be prepared to submit an attractive offer to secure a purchase. Perhaps no surprise given the time of year, there was a 31.49% increase in the number of single family homes listed in April when compared to March, although the number of current listing are still down 37.39% when compared to the same time frame last year.
What This Means For You
Based on the results for April, it is evident that the anticipated spring listings are hitting the market increasing inventory however with a reduction in the number of days a property remained on the market before being sold in April, this increase does not appear to be sufficient to satisfy current demand, especially as many properties still showing as active are tied up in accepted offers and many have back up offers in place. We continue solidly in an uptrending market, representing a great time to consider listing, especially if your home was listed previously but didn’t result in a successful sale.
Top Performing Neighbourhoods & Categories
As of April, several areas showed strength in both price appreciation and sales volume. The usual suspects such as North Nanaimo, Hammond Bay and Departure Bay all experienced significant year-over-year increases in the average sale price. However, South Nanaimo, Extension and the University District were all top performers, which suggests that increasingly buyers are seeking more affordable options as they are possibly priced out of the more expensive neighbourhoods. In terms of price appreciation by category, Waterfront homes were the top performer, although volume was down.
If you have been following our commentary over the last year, you will not be surprised to find out that apartment style condos is the category that is showing the most improvement in both pricing and volume. Year-over-year average condo prices are up 15%, with volume more than doubling year-over-year, as well as being up 79% over the previous month. Over the past year, we have been strong believers that condos represented the best value proposition, especially those located in close proximity to the seawall. With headlines always talking about the strength of the housing market, what many don’t realise is that the condo market in Nanaimo has really never recovered from the peak of the last cycle prior to the great recession in 2008. With increased out-of-town buying, many boomers starting to downsize, and single family home prices starting to get beyond the reach of first time buyers, condos appear poised for continued strong market action.
If you have any questions about market conditions or would like more details specific to your neighbourhood, please contact us at firstname.lastname@example.org and we would be happy to help.
Check out the Nanaimo Market Statistics Here: Monthly Stats April